Freedom Bank Earns Record Net Income for Third Quarter and First Nine Months

The Freedom Bank of Virginia (OTCQX:FDVA) earned net income of $791,715
for the third quarter ending September 30, 2017, up 9% from $719,205 for
the same period in 2016. For the nine months ending September 30, 2016,
net income was $2,515,851. This was up $730,771 (40.1%) from the prior
year. Earnings per share were $0.13 for third quarter, compared to $0.12
for the third quarter of 2016. Earnings per share through the third
quarter of 2017 were $0.41 per share, up from $0.29 per share in 2016.

Total assets increased $67,102,775 (13.6%) to $561,130,267 at September
30, 2017 compared to September 30, 2016. The highest yielding asset of
loans receivable grew $1,743,286 to $398,562,312 at September 30, 2017
from a year earlier. Loans held for sale were $11,528,559 compared to
$13,825,894 the prior year. Investment securities held for sale were
$52,772,671, up from $46,196,986 in 2016. Additionally, the bank had
$14,911,233 in municipal bonds held to maturity in 2017 that it did not
have the prior year.

Asset quality remains strong with non-performing assets comprising 0.30%
of total assets at September 30, 2017, versus 0.22% of total assets at
September 30, 2016. Past due loan balances still accruing interest were
$1,512,627 at September 30, 2017. Both of these metrics are superior to
community banks nationally.

Freedom generated core deposit growth in the third quarter. The bank
will use these deposits to fund loans and investments, which should have
a positive effect on profitability. Non-interest checking balances were
$73,483,463 at September 30, 2017, up 11.2% from $66,056,888 a year
earlier. Interest bearing checking account balances were $179,943,810, a
$74,887,370 (71.3%) increase from $105,056,440 the prior year.
Certificates of deposits were $238,411,457, down from $241,037,751 a
year earlier, as transaction accounts funded more of the growth of the
bank. Total deposits were $493,902,789 at September 30, 2017, versus
$414,299,769 the prior year. Transaction account balances of
$253,427,272 exceeded time and savings deposit balances of $240,475,516
for the first time in the past five years as a result of the bank's
emphasis on core deposit growth.

CEO Craig Underhill stated, "The bank focused on sustainable growth in
2017 by improving our infrastructure, growing core deposits and
improving our loan mix. Short-term borrowings were repaid to the FHLB
Atlanta and a large portion of brokered certificate of deposits were
redeemed and replaced with transaction account balances and public
deposits from local municipalities. We expect to open our fourth branch
office at 4500 Daly Drive, Suite 240, Chantilly, Virginia 20151 in the
fourth quarter to help continue growing core deposits and to serve new
and existing customers in this area. Freedom Bank also reduced its CRE
loan concentration in 2017 to provide a more diversified loan portfolio.
These actions slowed loan growth for 2017 versus the prior year but
positioned the bank for sustainable growth going forward."

Capital increased to $54,700,983 at September 30, 2017, a $3,542,012
increase over the $51,158,971 level at September 30, 2016. Tangible book
value per share was $8.81 at September 30, 2017, an increase from $8.30
per share at September 30, 2016.

Freedom Bank is a community-oriented, locally-owned bank with locations
in Fairfax, Reston and Vienna, Virginia, and coming soon our newest
location in Chantilly, Virginia. For information about Freedom Bank's
deposit and loan services, visit the Bank's website at www.freedombankva.com.

This release contains forward-looking statements, including our
expectations with respect to future events that are subject to various
risks and uncertainties. Factors that could cause actual results to
differ materially from management's projections, forecasts, estimates
and expectations include: fluctuation in market rates of interest and
loan and deposit pricing, adverse changes in the overall national
economy as well as adverse economic conditions in our specific market
areas, maintenance and development of well-established and valued client
relationships and referral source relationships, and acquisition or loss
of key personnel. Other risks that can affect the Bank are detailed from
time to time in our quarterly and annual reports filed with the Federal
Financial Institutions Examination Council. We caution readers that the
list of factors above is not exclusive. The forward-looking statements
are made as of the date of this release, and we may not undertake steps
to update the forward-looking statements to reflect the impact of any
circumstances or events that arise after the date the forward-looking
statements are made. In addition, our past results of operations are not
necessarily indicative of future performance.

The Freedom Bank of Virginia

Statements of Financial Condition

September 30, 2017

September 30, 2016

ASSETS

Cash and due from banks

$

1,487,632

$

1,176,028

Federal funds sold

69,119,000

24,107,000

Interest Bearing Balances with Banks

6,080,661

4,760,857

Investment securities available for sale, at fair value

52,722,671

46,196,986

Investment securities held to maturity

14,911,233

-

FHLB and Federal Reserve Bank stock

2,411,550

2,995,900

Loans held for sale

11,528,559

13,825,894

Loans receivable

398,562,312

396,819,026

Allowance for possible loan losses

(4,562,370

)

(4,100,459

)

Net Loans

393,999,942

392,718,567

Premises and equipment, net

1,383,953

713,768

Accrued interest and other receivables

1,392,669

1,028,948

Deferred Tax Asset

2,125,500

1,604,000

Other assets

1,643,945

2,632,761

Bank Owned Life Insurance

2,322,952

2,266,784

Total Assets

$

561,130,267

$

494,027,493

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Demand deposits:

Non-interest bearing deposits

$

73,483,463

$

66,056,888

Interest Checking

179,943,810

105,056,440

Savings deposits

2,064,059

2,148,690

Time deposits

238,411,457

241,037,751

Total Deposits

493,902,789

414,299,769

Fed Funds Purchased and FHLB advances

10,428,571

26,714,286

Other accrued expenses

1,950,442

1,685,112

Accrued interest payable

147,482

169,355

Total Liabilities

506,429,284

442,868,522

Stockholders' Equity:

Common stock of $0.01 par value with 25,000,000 shares authorized,

6,207,735 shares issued and outstanding at June 30, 2017

6,166,454 shares issued and outstanding at June 30, 2016

Voting Common Stock

58,668

55,377

5,579,028 and 5,537,747 shares issued and outstanding June 30,
2017 and June 30, 2016

Non-Voting Common Stock

6,601

6,287

628,707 shares issued and outstanding June 30, 2017 and June 30,
2016

Additional paid-in capital

52,311,337

47,774,866

Accumulated other comprehensive income

(387,271

)

94,876

Dividends Declared

-

-

Retained earnings

2,711,648

3,227,565

Total Stockholders' Equity

54,700,983

51,158,971

Total Liabilities and Stockholders' Equity

$

561,130,267

$

494,027,493

The Notes to Financial Statements are an integral part of these
statements.

The Freedom Bank of Virginia

Statements of Operations

For the three months ended

For the nine months ended

September 30,

September 30,

2017

2016

2017

2016

Interest Income

Interest and fees on loans

$

5,286,184

$

5,127,745

$

15,814,952

$

13,984,388

Interest on investment securities

603,727

288,447

1,390,015

908,254

Interest on Federal funds sold

6,388

362

12,565

8,084

Total Interest Income

5,896,299

5,416,554

17,217,532

14,900,726

Interest Expense

Interest on deposits

1,336,841

942,623

3,485,109

2,624,278

Interest on borrowed funds

47,076

32,130

125,709

81,450

Total Interest Expense

1,383,917

974,753

3,610,818

2,705,728

Net Interest Income

4,512,382

4,441,801

13,606,714

12,194,998

Provision for Possible Loan Losses

-

515,500

30,000

925,500

Net Interest Income after

Provision for Possible Loan Losses

4,512,382

3,926,301

13,576,714

11,269,498

Other Income

Gain on sale of mortgage loans

1,231,444

1,648,245

3,376,345

3,823,619

Service charges and other income

56,501

35,188

193,044

157,372

Increase in cash surrender value of bank-owned life insurance

13,894

14,829

42,569

45,089

Total Other Income

1,301,839

1,698,262

3,611,958

4,026,080

Operating Expenses

Officers and employee compensation and benefits

2,869,891

2,969,295

8,507,074

8,156,757

Occupancy expense

264,713

250,340

754,793

730,523

Equipment and depreciation expense

144,742

150,177

432,083

403,804

Insurance expense

73,932

78,579

290,335

236,644

Professional fees

397,895

227,682

1,055,925

693,501

Data and item processing

256,270

221,129

670,757

690,145

Business development

61,092

36,128

169,001

150,809

Franchise tax

131,156

107,070

361,353

278,718

Mortgage fees and settlements

203,356

314,588

530,087

745,333

Other operating expenses

211,559

181,270

605,413

504,864

Total Operating Expenses

4,614,606

4,536,258

13,376,821

12,591,098

Income before Income Taxes

1,199,615

1,088,305

3,811,851

2,704,480

Provision for Income Taxes

407,900

369,100

1,296,000

919,400

Net Income

$

791,715

$

719,205

$

2,515,851

$

1,785,080

The Notes to Financial Statements are an integral part of these
statements.